€259K Torrevieja Case Study
Torrevieja New Build at €259K: The Full Breakdown
3-bed new build in central Torrevieja for €259,000. Full cost analysis, rental yield projections, and why this price point works for investors.
The Property
Three double bedrooms, two bathrooms, 96m² built area with 14m² of terrace. This new-build apartment sits in central Torrevieja, 400 meters from Playa del Cura, and it's priced at €259,000.
The building itself is where things get interesting. Ground-floor gym. Rooftop solarium with a Finnish sauna and mini pool. Communal swimming pool. Gated access, elevator, and optional underground parking at extra cost. Inside, you get pre-installed air conditioning, underfloor heating in both bathrooms, and an American-style kitchen with appliances included. Energy rating B, which matters more than most buyers realise when utility bills arrive.
Torrevieja works as an investment location for one simple reason: year-round demand. The city has one of the largest Northern European expat communities on the Costa Blanca, and its mild winters (average 20°C annual temperature) attract long-stay visitors from November through March. That's when most coastal towns go quiet. Torrevieja doesn't.
The central location means everything is walkable. Restaurants, supermarkets, the marina (1km), and the beach are all on foot. Guests don't need a rental car, which lifts your listing above villa rentals in surrounding urbanisations. Alicante Airport is 45km away, Murcia Airport 60km. Both have year-round budget airline connections across Europe.
The Numbers
New builds in the Valencia region pay 10% VAT (IVA) plus 1.5% stamp duty (AJD), totalling 11.5% in tax. Resale properties pay 10% transfer tax (ITP) and no stamp duty. The new-build route costs 1.5 percentage points more in tax, but you get a 10-year structural warranty, zero renovation budget, and an energy-efficient building. That trade-off usually pays for itself within two years through lower maintenance and utility costs.
Non-residents can finance up to 70% of the purchase price. On €259,000, that's a maximum mortgage of €181,300, leaving you with roughly €112,000 in equity needed to close.
| Cost | Amount |
|---|---|
| Purchase price | €259,000 |
| VAT (IVA) at 10% | €25,900 |
| Stamp duty (AJD) at 1.5% | €3,885 |
| Notary fees | ~€800 |
| Land registry | ~€600 |
| Lawyer (1% + 21% VAT) | €3,134 |
| Total buying costs | ~€34,319 |
| Total investment | ~€293,319 |
A 3-bedroom apartment in central Torrevieja commands €200-260 per night during peak season (June through September) and €80-115 in the quieter months. Torrevieja's winter advantage shows up here: long-stay bookings of 4-8 weeks from Northern Europeans fill the gap that most coastal towns can't cover. At realistic occupancy rates (70% summer, 45% shoulder, 25% winter), gross annual rental income lands between €20,000 and €24,000.
After annual running costs of €5,750-6,350, net income sits at €14,250-17,650. That's a 5.5-6.8% net yield on the purchase price, or 4.9-6.0% on total investment including buying costs.
| Cost Category | Estimated Annual |
|---|---|
| Community fees | €1,200-1,500 |
| IBI (property tax) | €500-700 |
| Basura (waste tax) | ~€200 |
| Insurance | ~€350 |
| Maintenance | ~€500 |
| Property management (15%) | €3,000-3,600 |
| Total annual costs | €5,750-6,350 |
Why This Works
400m from the beach
Central location means guests walk to Playa del Cura, restaurants, and the marina. No car needed.
New-build advantage
Energy rating B cuts utility costs. 10-year structural warranty. Near-zero maintenance for the first 5 years.
Rooftop that sells
Finnish sauna, mini pool, solarium, and gym. These amenities make listings stand out on Airbnb.
Year-round demand
Torrevieja's mild winters attract long-stay visitors from November to March. Not just a summer market.
Most competing apartments in Torrevieja are older resale buildings from the 2000s without communal amenities beyond a basic pool. A rooftop Finnish sauna and mini pool photograph well and justify a higher nightly rate. On Airbnb, the first three photos determine whether someone clicks or scrolls past. Rooftop shots with sea views convert.
The energy rating matters for long-stay guests. A winter booking of 6-8 weeks means the heating runs daily. An energy B building with underfloor heating in bathrooms costs significantly less to run than a 1990s apartment with portable heaters. Your guests notice, and it shows up in reviews.
New-build maintenance is predictable. You won't face a surprise €3,000 plumbing repair or a community vote to replace the building's facade in year two. The 10-year structural warranty from the developer covers the expensive failures. For the first 5 years, budget €500/year for maintenance. A resale apartment of the same size typically runs €1,500-2,000.
The Verdict
At €259,000, this is one of the more accessible entry points into the Spanish coastal property market with a genuine return profile. The total investment of €293,000 is achievable with €112,000 in equity if you finance at 70% LTV.
With a €181,300 mortgage at 3.5% over 25 years, monthly payments come to roughly €905, or €10,860 annually. Net rental income of €14,250-17,650 covers those payments and leaves €3,400-6,800 in positive cash flow per year. That's before any capital appreciation.
The property also works as a dual-use investment. Generate rental income when you're not there, and use it yourself during low season when yields are lowest anyway. Three bedrooms means you can bring family without feeling cramped.
For a full breakdown of buying costs and taxes in Spain, check our guide. If you're comparing financing options, our mortgage and finance guide covers non-resident terms and current rates.
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